LCCMR approves two statewide water tools to screen data-center and large-user impacts

The Legislative Citizen Commission on Minnesota Resources voted this morning to fund two projects aimed at giving communities and regulators better information about how large water users — notably data centers — affect streams and groundwater.

In separate roll-call votes the commission approved funding for “Water sustainability in the era of data centers” (motion passed 12–5) and for the “Minnesota Water Risk Atlas” (motion passed 11–6). Both motions included authority for staff to approve the project work plans if the governor signs the appropriation.

The proposals were the two finalists from the LCCMR’s Emerging Issues account. Dr. Nigel Pickering of Geosyntech, presenting for University of Minnesota co‑investigator John Niebuhr, described a statewide expansion of a pilot water-withdrawal management framework (current pilot budget cited at $198,000) to produce a more robust water-budget model and graphical decision tools for comparing near‑natural conditions with proposed withdrawals. Pickering emphasized that data centers create both direct water demand for cooling and indirect water use through increased power generation, and said existing permitting is done site‑by‑site with limited cumulative watershed analysis.

Carrie Jennings of Freshwater proposed a Minnesota-specific Water Risk Atlas that adapts the structure of the World Resources Institute’s Aqueduct tool but substitutes high‑resolution Minnesota geology, groundwater, streamflow and regulatory layers so city managers, planners and industry can assess siting risk without signing nondisclosure agreements that sometimes hinder local coordination with agencies.

The most contentious portion of the meeting was not the technical merits but the procedural question of whether those projects belong in the Emerging Issues account. Several legislators and members — including Representative Heintzeman and Senator Westrom — argued that data centers and water‑siting questions have been before the legislature and agencies for years and therefore should undergo the regular RFP and legislative review. Representative Fisher and commissioners from water‑stressed regions countered that the pace of data‑center proposals and nondisclosure practices are creating urgent information needs for local governments and that a rapid, statewide screening tool would help communities and agencies make faster, more informed decisions.

Director Nash told members that the Emerging Issues appropriation used for these recommendations included two appropriations: ML 2024 ($186,000, spend-by 06/30/2027) and ML 2025 ($2,900,000, spend-by 06/30/2028). The commission's approval was conditioned on the usual requirement that the governor also approve funding; staff will proceed with work‑plan approvals only after that sign‑off.

The commission’s action is intended to produce publicly available screening tools, workshops and technical guidance so local governments can evaluate proposed large water users before committing to deals or signing NDAs. Both proposers emphasized outreach and training as part of their work plans.

Next procedural steps: LCCMR staff will finalize draft work plans with project managers and, if the governor concurs with the commission's recommendations in the 2026 appropriations process, staff will be delegated to approve the plans and the projects may begin incurring eligible costs as allowed by statute.